You Are Given the Following Information About the Economy: the Nominal

question 62

Multiple Choice

You are given the following information about the economy: the nominal interest rate = 8 percent; the real rate of interest = 6 percent. The inflation premium is:

• A) 2 percent
• B) 6 percent
• C) 8 percent
• D) 14 percent

---

Definitions:

Information Richness

The degree to which information contains cues that can be interpreted in multiple ways and leads to understanding.

Congruence

The state or quality of being in agreement or harmony.

Suggestion Systems

Programs designed to enhance upward communication by soliciting ideas for improved work operations from employees.

Upward Communication

The process by which information or feedback is communicated from lower levels of an organization to its higher levels, often involving feedback or reports from employees to management.